Section R14-2-703. Load-serving Entity Reporting Requirements

A.      A load-serving entity shall, by April 1 of each year, file with Docket Control a compilation of the following items of demand-side data, including for each item for which no record is maintained the load-serving entity’s best estimate and a full description of how the estimate was made:

1.        Hourly demand for the previous calendar year, disaggre- gated by:

a.         Sales to end users;

b.        Sales for resale;

c.         Energy losses; and

d.        Other disposition of energy, such as energy fur- nished without charge and energy used by the load- serving entity;

2.        Coincident peak demand (megawatts) and energy con- sumption (megawatt-hours) by month for the previous 10 years, disaggregated by customer class;

3.        Number of customers by customer class for each of the previous 10 years; and

4.        Reduction in load (kilowatt and kilowatt-hours) in the previous calendar year due to existing demand manage- ment measures, by type of demand management measure.

B.       A load-serving entity shall, by April 1 of each year, file with Docket Control a compilation of the following items of sup- ply-side data, including for each item for which no record is

maintained the load-serving entity’s best estimate and a full description of how the estimate was made:

1.        For each generating unit and purchased power contract for the previous calendar year:

a.         In-service date and book life or contract period;

b.        Type of generating unit or contract;

c.         The load-serving entity’s share of the generating unit’s capacity, or of capacity under the contract, in megawatts;

d.        Maximum generating unit or contract capacity, by hour, day, or month, if such capacity varies during the year;

e.         Annual capacity factor (generating units only);

f.         Average heat rate of generating units and, if avail- able, heat rates at selected output levels;

g.        Average fuel cost for generating units, in dollars per million Btu for each type of fuel;

h.        Other variable operating and maintenance costs for generating units, in dollars per megawatt hour;

i.         Purchased power energy costs for long-term con- tracts, in dollars per megawatt-hour;

j.         Fixed operating and maintenance costs of generating units, in dollars per megawatt;

k.        Demand charges for purchased power;

l.         Fuel type for each generating unit;

m.       Minimum capacity at which the generating unit would be run or power must be purchased;

n.        Whether, under standard operating procedures, the generating unit must be run if it is available to run;

o.        Description of each generating unit as base load, intermediate, or peaking;

p.        Environmental impacts, including air emission quantities (in metric tons or pounds) and rates (in quantities per megawatt-hour) for carbon dioxide, nitrogen oxides, sulfur dioxide, mercury, particu- lates, and other air emissions subject to current or expected future environmental regulation;

q.        Water consumption quantities and rates; and

r.         Tons of coal ash produced per generating unit;

2.        For the power supply system for the previous calendar year:

a.         A description of generating unit commitment proce- dures;

b.        Production cost;

c.         Reserve requirements;

d.        Spinning reserve;

e.         Reliability of generating, transmission, and distribu- tion systems;

f.         Purchase and sale prices, averaged by month, for the aggregate of all purchases and sales related to short- term contracts; and

g.        Energy losses;

3.        The level of self generation in the load-serving entity’s service area for the previous calendar year; and

4.        An explanation of any resource procurement processes used by the load-serving entity during the previous calen- dar year that did not include use of an RFP, including the exception under which the process was used.

C.      A load-serving entity shall, by April 1 of each even year, file with Docket Control a compilation of the following items of load data and analyses, which may include a reference to the last filing made under this subsection for each item for which there has been no change in forecast since the last filing:

1.        Fifteen-year forecast of system coincident peak load (megawatts) and energy consumption (megawatt- hours) by month and year, expressed separately for

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residential, commercial, industrial, and other cus- tomer classes; for interruptible power; for resale; and for energy losses;

2.        Disaggregation of the load forecast of subsection (C)(1) into a component in which no additional demand management measures are assumed, and a component assuming the change in load due to addi- tional forecasted demand management measures; and

3.        Documentation of all sources of data, analyses, methods, and assumptions used in making the load forecasts, including a description of how the fore- casts were benchmarked and justifications for select- ing the methods and assumptions used.

D.      A load-serving entity shall, by April 1 of each even year, file with Docket Control the following prospective analyses and plans, which shall compare a wide range of resource options and take into consideration expected duty cycles, cost projec- tions, other analyses required under this Section, environmen- tal impacts, and water consumption and may include a reference to the last filing made under this subsection for each item for which there has been no change since the last filing:

1.        A 15-year resource plan, providing for each year:

a.         Projected data for each of the items listed in subsec- tion (B)(1), for each generating unit and purchased power source, including each generating unit that is expected to be new or refurbished during the period, which shall be designated as new or refurbished, as applicable, for the year of purchase or the period of refurbishment;

b.        Projected data for each of the items listed in subsec- tion (B)(2), for the power supply system;

c.         The capital cost, construction time, and construction spending schedule for each generating unit expected to be new or refurbished during the period;

d.        The escalation levels assumed for each component of cost, such as, but not limited to, operating and maintenance, environmental compliance, system integration, backup capacity, and transmission deliv- ery, for each generating unit and purchased power source;

e.         If discontinuation, decommissioning, or mothballing of any power source or permanent derating of any generating facility is expected:

i.         Identification of each power source or generat- ing unit involved;

ii.        The costs and spending schedule for each dis- continuation, decommissioning, mothballing, or derating; and

iii.      The reasons for each discontinuation, decom- missioning, mothballing, or derating;

f.         The capital costs and operating and maintenance costs of all new or refurbished transmission and dis- tribution facilities expected during the 15-year period;

g.        An explanation of the need for and purpose of all expected new or refurbished transmission and distri- bution facilities, which explanation shall incorporate the load-serving entity’s most recent transmission plan filed under A.R.S. § 40-360.02(A) and any rele- vant provisions of the Commission’s most recent Biennial Transmission Assessment decision regard- ing the adequacy of transmission facilities in Ari- zona; and

h.        Cost analyses and cost projections, including the cost of compliance with existing and expected envi- ronmental regulations;

2.        Documentation of the data, assumptions, and methods or models used to forecast production costs and power pro- duction for the 15-year resource plan, including the method by which the forecast was benchmarked;

3.        A description of:

a.         Each potential power source that was rejected;

b.        The capital costs, operating costs, and maintenance costs of each rejected source; and

c.         The reasons for rejecting each source;

4.        A 15-year forecast of self generation by customers of the load-serving entity, in terms of annual peak production (megawatts) and annual energy production (megawatt- hours);

5.        Disaggregation of the forecast of subsection (D)(4) into two components, one reflecting the self generation pro- jected if no additional efforts are made to encourage self generation, and one reflecting the self generation pro- jected to result from the load-serving entity’s institution of additional forecasted self generation measures;

6.        A 15-year forecast of the annual capital costs and operat- ing and maintenance costs of the self generation identi- fied under subsections (D)(4) and (5);

7.        Documentation of the analysis of the self generation under subsections (D)(4) through (6);

8.        A plan that considers using a wide range of resources and promotes fuel and technology diversity within its portfo- lio;

9.        A calculation of the benefits of generation using renew- able energy resources;

10.     A plan that factors in the delivered cost of all resource options, including costs associated with environmental compliance, system integration, backup capacity, and transmission delivery;

11.     Analysis of integration costs for intermittent resources;

12.     A plan to increase the efficiency of the load-serving entity’s generation using fossil fuel;

13.     Data to support technology choices for supply-side resources;

14.     A description of the demand management programs or measures included in the 15-year resource plan, including for each demand management program or measure:

a.         How and when the program or measure will be implemented;

b.        The projected participation level by customer class for the program or measure;

c.         The expected change in peak demand and energy consumption resulting from the program or measure;

d.        The expected reductions in environmental impacts, including air emissions, solid waste, and water con- sumption, attributable to the program or measure;

e.         The expected societal benefits, societal costs, and cost-effectiveness of the program or measure;

f.         The expected life of the measure; and

g.        The capital costs, operating costs, and maintenance costs of the measure, and the program costs;

15.     For each demand management measure that was consid- ered but rejected:

a.         A description of the measure;

b.        The estimated change in peak demand and energy consumption from the measure;

c.         The estimated cost-effectiveness of the measure;

d.        The capital costs, operating costs, and maintenance costs of the measure, and the program costs; and

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e.         The reasons for rejecting the measure;

16.     Analysis of future fuel supplies that are part of the resource plan; and

17.     A plan for reducing environmental impacts related to air emissions, solid waste, and other environmental factors, and for reducing water consumption.

E.       A load-serving entity shall, by April 1 of each even year, file with Docket Control a compilation of the following analyses and plan:

1.       

as sensitivity analysis and probabilistic analysis:	2007	5%
a.      Demand forecasts;	2008	10%
b.     The  costs  of  demand  management   measures  and power supply;	2009	15%
c.      The availability of sources of power;	2010	20%
d.     The costs of compliance with existing and expected	2011	25%
environmental regulations;	After 2011	30%

  

 

Analyses to identify and assess errors, risks, and uncer- tainties in the following, completed using methods such

a.         Any analysis by the load-serving entity in anticipa- tion of potential new or enhanced environmental regulations;

b.        Changes in fuel prices and availability;

c.         Construction costs, capital costs, and operating costs; and

d.        Other factors the load-serving entity wishes to con- sider;

2.        A description and analysis of available means for manag- ing the errors, risks, and uncertainties identified and ana- lyzed in subsection (E)(1), such as obtaining additional information, limiting risk exposure, using incentives, cre- ating additional options, incorporating flexibility, and participating in regional generation and transmission projects; and

3.        A plan to manage the errors, risks, and uncertainties iden- tified and analyzed in subsection (E)(1).

F.       A load-serving entity shall, by April 1 of each even year, file with Docket Control a 15-year resource plan that:

1.        Selects a portfolio of resources based upon comprehen- sive consideration of a wide range of supply- and demand-side options;

2.        Will result in the load-serving entity’s reliably serving the demand for electric energy services;

3.        Will address the adverse environmental impacts of power production;

4.        Will include renewable energy resources to meet or exceed the greater of the Annual Renewable Energy Requirement in R14-2-1804 or the following annual per- centages of retail kWh sold by the load-serving entity:

2022                        12.0%

2023                        13.0%

2024                        14.0%

after 2024                15.0%

5.        Will include distributed generation energy resources to meet or exceed the greater of the Distributed Renewable Energy Requirement in R14-2-1805 or the following annual percentages as applied to the load-serving entity’s Annual Renewable Energy Requirement:

6.        Will address energy efficiency so as to meet any require- ments set in rule by the Commission or in an order of the Commission;

7.        Will effectively manage the uncertainty and risks associ- ated with costs, environmental impacts, load forecasts, and other factors;

8.        Will achieve a reasonable long-term total cost, taking into consideration the objectives set forth in subsections (F)(2) through (7) and the uncertainty of future costs; and

9.        Contains all of the following:

a.         A complete description and documentation of the plan, including supply and demand conditions, availability of transmission, costs, and discount rates utilized;

b.        A    comprehensive,    self-explanatory    load    and resources table summarizing the plan;

c.         A brief executive summary;

d.        An index to indicate where the responses to each fil- ing requirement of these rules can be found; and

e.         Definitions of the terms used in the plan.

G.      A load-serving entity shall, by April 1 of each odd year, file with Docket Control a work plan that includes:

1.        An outline of the contents of the resource plan the load- serving entity is developing to be filed the following year as required under subsection (F);

2.        The load-serving entity’s method for assessing potential resources;

3.        The sources of the load-serving entity’s current assump- tions; and

4.       

Calendar Year	Percentage of Retail kWh Sold During Calendar Year
2010	2.5%
2011	3.0%	H.
2012	3.5%
2013	4.0%
2014	4.5%
2015	5.0%
2016	6.0%
2017	7.0%
2018	8.0%	I.
2019	9.0%
2020	10.0%
2021	11.0%

  

 

An outline of the timing and extent of public participation and advisory group meetings the load-serving entity intends to hold before completing and filing the resource plan.

With its resource plan, a load-serving entity shall include an action plan, based on the results of the resource planning pro- cess, that:

1.        Includes a summary of actions to be taken on future resource acquisitions;

2.        Includes details on resource types, resources capacity, and resource timing; and

3.        Covers the three-year period following the Commission’s acknowledgment of the resource plan.

A load-serving entity or interested party may provide, for the Commission’s consideration, analyses and supporting data pertaining to environmental impacts associated with the gener- ation or delivery of electricity, which may include monetized estimates of environmental impacts that are not included as

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costs for compliance. Values or factors for compliance costs, environmental impacts, or monetization of environmental impacts may be developed and reviewed by the Commission in other proceedings or stakeholder workshops.

J.        If a load-serving entity’s submission does not contain suffi- cient information to allow Staff to analyze the submission fully for compliance with this Article, Staff shall request addi- tional information from the load-serving entity, including the data used in the load-serving entity’s analyses.

K.      Staff may request that a load-serving entity complete addi- tional analyses to improve specified components of the load- serving entity’s submissions.

L.       If a load-serving entity believes that a data-reporting require- ment may result in disclosure of confidential business data or confidential electricity infrastructure information, the load- serving entity may submit to Staff a request that the data be submitted to Staff under a confidentiality agreement, which request shall include an explanation justifying the confidential treatment of the data.

M.     Data protected by a confidentiality agreement shall not be sub- mitted to Docket Control and will not be open to public inspection or otherwise made public except upon an order of the Commission entered after written notice to the load-serv- ing entity.

Historical Note

Adopted effective February 3, 1989 (Supp. 89-1).

Amended by final rulemaking at 16 A.A.R. 2150, effec- tive December 20, 2010 (Supp. 10-4).